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To: Steve Fancy who wrote (3145)3/22/2001 11:39:21 AM
From: Gilbert Drapeau  Respond to of 3891
 
Alcatel Awarded US$180 Million Contract For Mobile
Expansion In China

DALLAS, TEXAS--MARCH 22, 2001 - 11:32 EST
Jiangsu Mobile Communication Co (JSMCC), a major
mobile operator in China, has awarded Alcatel (Paris: CGEP.PA,
NYSE: ALA) a US$180 million contract for a GSM network expansion
project. The project is part of a long-term strategic partnership
agreement signed today in Beijing.

Under the agreement, Alcatel will provide JSMCC with its powerful
Evolium solution, including base transceiver stations, base
station controllers, mobile switching centers, operation &
maintenance controllers-radio as well as a full range of
professional services. Alcatel will also help JSMCC upgrade its
network and ensure its transition to GPRS. Alcatel and JSMCC will
also establish an overall strategic relationship for R & D,
training and market development.

This extension is the fifth project undertaken by JSMCC. Since
1994, when Alcatel installed Jiangsu Mobile's first GSM network,
all expansion projects have been implemented by Alcatel's Chinese
joint venture SBAMC (Shanghai Bell Alcatel Mobile Communications).

"Providing quality of service has been the way to win customer
loyalty," said Michel Rahier, president of Alcatel's mobile
communication activities. "Through our seven years of cooperation,
Alcatel has helped Jiangsu Mobile's network become one of the most
reliable and powerful in China."

"Quality of network as well as quality of service are essential to
any operator," said He Ning, general manager of JSMCC. "Our long
term relationship with Alcatel has helped build the mutual trust
necessary to ensure continuous development. The number of mobile
subscribers in Jiangsu has grown to 3.26 million from only 92.000
in 1994."

"We are fully committed to helping Jiangsu Mobile achieve seamless
migration to new generation networks in a cost-effective way,"
said Tarek Moustafa, president of SBAMC.

In China, Alcatel has installed mobile networks in 15 provinces
and autonomous regions including Jiangsu, Zhejiang, Shanghai,
Jilin, Shanxi, Guizhou, Ningxia, Gansu, Chongqing, Liaoning,
Xizang or Shaanxi. Alcatel installed China's first GPRS pilot
network and WAP trial in December 1999.

China's mobile users have increased from 43 million in 1999 to 85
million in 2000. This figure is expected to reach 130 million by
the end of 2001.

About Alcatel

Alcatel builds next generation networks, delivering integrated
end-to-end voice and data networking solutions to established and
new carriers, as well as enterprises and consumers worldwide. With
130,000 employees and sales of EURO 31 billion in 2000, Alcatel
operates in more than 130 countries.

Alcatel has been present in China since 1983. Its investment in
China has now brought forth 16 joint-venture companies and 6
wholly owned companies including five R & D centers, covering the
full scope of telecommunications. It is also the supplier of all
major telecom operators in China. For more information, please
visit alcatel.com.cn.

SBAMC, a joint venture between Alcatel and Shanghai Bell, focuses
on the production and engineering services of complete GSM and DSC
1800 mobile networks in China. SBAMC is located in Shanghai's new
area of Pudong and has branch offices in 11 provinces.